Time Warner Cable disappoints investors

Analysts are accusing Time Warner Cable of going a little soft. The cable operator's profit margins disappointed investors as the stock fell 6.7 percent and had earlier fallen 8.1 percent, it's largest intraday decline since October of 2011, according to Businessweek.

TWC apparently had a rosier view of their earnings when they said that adjusted earnings per share would grow 10 percent to 15 percent this year. According to TWC's CFO Irene Esteves, the company's profits will likely suffer from rising programming costs, sports channel fees and decline in political ad revenue.

Rate increases will cover some of the additional costs, despite the outcry from customers or their threats of cord cutting. Chief Executive Glenn Britt addressed the ever increasing sports programming fees that are being passed on to the customers on a call with analysts on Wednesday.

For the fourth quarter ending Dec. 31, 2012, TWC profits dropped 9 percent to $513 million. Revenue at the cable giant increased 10 percent to $5.49 billion. The company recently announced that it lost 129,000 residential video customers and the basic cable subscriber base has declined every quarter since 2009 as customers switch to other providers or internet-based services.

The company is still experiencing growth in other sectors of its business, adding 75,000 residential high-speed data subscribers and 14,000 business customers, according to a statement by the company.